Labor Groups Push for New Law to Criminalize Nonpayment of Wages

October 26, 2009

Los Angeles - Labor groups and wage-earners are urging the city government to pass a law that will criminalize wage theft that is currently considered only a civil offense. If pass into law, the city ordinance will target employers who will not pay workers and will violate the minimum wage and overtime pay laws.

City Councilor Richard Alarcon, one of the supporters of the proposed law, said he will direct the city attorney’s office to draft an ordinance that will criminalize wage theft.

In an interview, Alarcon said “employers have the responsibility to pay their workers and give the rightful amount wages.”

“They [employers] cannot simply refuse to pay their workers if they do not like the work. With this proposed law, doing this will already be considered a criminal offense”, he said.

The councilor said he supports the proposed law after learning that most wage-earners in major cities like Los Angeles, Chicago, and New York do not receive minimum wage and overtime pays.

According to a recent study conducted by the University of California, Los Angeles (UCLA), 76 percent of wage-earners said their employers did not give their latest overtime pays while 26 percent of them said their latest paycheck does not meet the minimum wage.

UCLA Professor Ruth Milkman, who co-authored the study, said the research team was shocked to discover the wage gap between low earners and salaried employers.

Meanwhile, private employers express concern over the proposed law and urge the city government to discuss the issue with them before passing the ordinance.